Consultants said a fee in Ireland had cut single-use bags by 90%, helped reduce litter and offered a "particularly attractive model" for Wales to follow.

Marks & Spencer and Ikea are among familiar names in the UK that have seen a big drop in demand for bags after introducing fees, the report says.

Some 480m single-use bags were issued in Wales last year. While this will drop because of an agreement between large retailers and the government, it is expected about 320m will continue to be handed out each year.

The British Retail Consortium opposes the move, saying shops have already made progress without the need for legislation.

Davidson said: "This report backs up my view that introducing a charge on single-use carrier bags is the only way to further reduce the amount… we use in Wales while also encouraging people to reuse bags. This is about changing consumer habits for the long-term good of our environment.

She said Britain was "behind the curve", with countries around the world charging for plastic bags.

BRC business environment director Tom Ironside said: "Welsh customers and retailers have already effectively halved the number of single-use bags used between May 2006 and May 2009. Introducing a bag charge is not the best way to achieve lasting change in customer behaviour."